The Canadian Dollar and wheat basis

[Oilking]

Well the Canadian dollar keeps dropping, over a cent the past 2 days and the wheat basis doesn't narrow. Not at my local elevator and others that I've checked. What's their excuse now ? Isn't it time that this should be regulated already? Anyone else notice this? It really pisses me off. When the dollar goes up, every time the basis widens. What a screwed up system we have here in western canada

[bucket]

Yup

It's the incompetence of the conservatives that won't finish the job of the open market.

[bucket]

Besides the fx is in the basis. Why would you expect any value out of that. It's the same thing the cwb did.

Pissed me off then and does now as well.


It's ****ing retarded but have you ever seen the graincos called in front of the parliamentary committee to explain themselves?

Nope won't happen.

[bucket]

Sorry the graincos families are self regulating.

It's really called collusion.

[cottonpicken]

It's called command and control of the choke points

[bucket]

Sure but it used to be illegal.

[Braveheart]

Jwab, I agree. Wheat should be quoted I USD. That should be for futures and basis quotes.

Right now it's a real dog's breakfast. Richardsons calculate fx in the basis but not on the futures. Paterson calculates fx on the futures but quotes basis in CAD.

It would make our job easier were there consistency in the how the quotes were based.

[Braveheart]

I don't know how the other companies treat the quotes re fx.

[wmoebis]

Thought the gov't was paying someone to look into this.

[wmoebis]

See where the CGC report on handling tariffs came out. Why can't they report prices and basis and how they are reported. Since handling costs are in the basis.

[errolanderson]

Every currency in the world is losing ground to the strengthening U.S. dollar of late.

Cdn wheat is shipped all over the world. Also, U.S. wheat is now about 70 cent/bu premium over Black Sea values. Russia and Ukraine is exporting as much as possible to inject foreign currency reserves.

It's not as simple as just the Cdn dollar dropping to the U.S.

[bucket]

It's never easy errol finding an excuse as to why our products we sell are worth less but everything we buy is worth more.

Fertilizer never takes a price hit due to black Sea competition.

Tractors never go down in value.

They are technically no different than wheat when you start saying things like ....its not as simple as the cdn dropping against the usd....


Then everything should get the same discount. Or is it time to make things more complicated now?

[Lex]

Supply demand curves for food are inelastic. Thats fundamentally different from other commodities.